4 July 2022Asia analysis

Aon: Asia captive market set to grow

Aon has published its latest review of the Asian insurance market, which included a snapshot of the captives sector in the region.

According to Aon directors and Officers (D&O) remain a concern but with planning, innovation and due diligence, clients utilised captives to complete placements, especially Sides B and C.

More clients considered including employee benefits by selfinsuring through captives. Timing was crucial, Aon said. Businesses discussed with their broker soon after their renewal – not before – allowing a time frame of 9 months to form a new captive.

Aon predicted that live enquiries from organisations about forming a captive or protected cell are projected to increase.

The broker said that captive owners will reassess their programmes to optimise risk retention and return on investment. The general upward mergers and acquisitions trend will lead to risk finance optimisation reviews for risk retention and captives.

According to Aon based on current activity, more captives will be formed in 2022 to help organisations manage their total cost of insured risk. It concluded that Asia is an immature captive market and that it expects it to grow.